What's a Subsidized Loan?

Hate paying interest? Subsidized loans are loans for which the borrower does not pay interest. Interest would normally be charged periodically according to the annual percentage rate (APR). However, with a subsidized loan the interest is paid by another party. Of course, all good things come to an end sooner or later. Find out how subsidized loans work.

Further reading:

• How Annual Percentage Rate (APR) Works
• Stafford Loans